FREQUENTLY ASKED QUESTIONS:

What are your fees?
Our fee is on a contingency basis , payable only AFTER you receive your refund. If we find nothing, you pay nothing. And our fees apply only to the recoveries we obtain on taxes already paid; all future savings are yours alone.

How much sales and use tax money do you usually recover?
Recoveries vary, but typically they are between a few thousand dollars to well over half a million - lost money, now rescued from the statute of limitations.

We're a manufacturer, we pay very little pay sales tax - why do we need your service?
Yes, manufacturers are entitled to numerous exemptions - some, more than others. However, our 15 years of experience and millions of dollars in refunds have shown that most manufacturers do not take FULL advantage of ALL their exemptions.

Some examples of overpayments that we frequently find, even in companies who don't pay very much tax, are:

• Merchandise posted to taxable accounts but used in a manner rendering it exempt.
• Overpayments due to changes in the tax law.
• Purchases considered to be taxable but containing some production or other tax exempt components.
• Vendors incorrectly charging tax on exempt manufacturing items.
• A/P clerks who accrue/self-assess tax on goods/services, unaware of specific exemptions and/or changes in state tax laws.

What about confidentiality?
Our contract states that information and records that we have access to will be kept in strictest confidence. We will also sign any additional confidentiality agreements you wish to provide.

My people know what they're doing - why do we need your services?
Even the best people miss things. Not everyone has the time and resources to stay current with the ever-changing tax environments, particularly in times of corporate downsizing. And, they may have others working for them who may be even less certain about the complexities of the business or the importance of sales tax compliance.

Even the best people can miss things simply due to lack of sales tax expertise. We've encountered many businesses working with an outdated set of guidelines, based on tax legislation which may have changed numerous times since the guidelines were written. Employees faithfully follow the guidelines, but the guidelines are no longer correct!

How much of my staff time is involved?
Very little. We spend about ten minutes with a senior financial person (VP-Finance, Controller, etc.) asking some basic questions. After that we ask for three things: a place to work, the location of your files, and a chart of accounts. As we near the completion of our review, we may request a meeting - at your convenience - to present our preliminary findings or to obtain clarification of certain items. We DO NOT ask your employees to make photocopies or schedules for us - we do those ourselves. Once submitted, we take care of any necessary claim follow up.

What about finding underpayments in addition to overpayments?
If you are audited by the state, it rarely (if ever) informs you of overpayments - only your liabilities. By identifying underpayments of tax, now, corrective steps can be taken which will eliminate interest and penalties on a future audit when those liabilities would have been uncovered. Please see our Compliance Review section for more information.

Can filing a refund claim be associated with an audit?
Out of the hundreds of claims we have filed, less than 2% may have. However, state audit departments are already so busy that they cannot audit every refund claim received - even if they wanted to! Our experience has shown that a properly prepared refund claim, well substantiated and in the desired format, will almost always be handled by desk audit. Occasionally a client will have already been scheduled for an audit by the state, in which case the claim will be automatically forwarded to the field auditor.

What if we do get audited?
We'll meet and work with any government auditors at your premises to defend or clarify the refund application. Most audits happen because the audit was already on the state's schedule. The state is constantly hiring new auditors and looking for new tax revenues. Our refund applications consistently stand up under audit scrutiny, and we can provide ample references to prove it.

What if there is a subsequent reversal or reduction to your claim?
Our contract clearly states that we will refund all fees on any items reversed or reduced, no questions asked. Reversals and reductions rarely occur because our claims are bona-fide and hold up under audit scrutiny.

What if I have any questions after you have completed your work?
All submissions and correspondence go out under your signature and with your express approval. We also provide you with a complete set of schedules and working papers, so you can review all of our work. However, if you have questions after your claim has been filed and paid, call, fax, or e-mail us anytime! It's usually something we can answer immediately over the phone. If not, we'll check into it and get back to you ASAP. If it's a gray area, we'll give you our honest opinion, and assist you in requesting a written interpretation or ruling from the state. In any case, this added benefit is available at no additional charge.